Indonesia's central bank is considering the edition of digital currencies to fight crypto - regulation
Indonesia's central bank is considering the edition of digital currencies to fight crypto - regulation
The Bank Indonesia, the country's central bank, is reportedly considering the issue of a digital central bank currency (CBDC) in order to combat the use of cryptocurrencies. "A CBDC would be one of the tools to combat crypto. We assume that people would find CBDC more credible than crypto," said a deputy governor of the central bank.
Central bank sees CBDC as a tool for "combating crypto"
Juda Agung, a deputy governor of Bank Indonesia, the central bank of the country, spoke during his parliamentary “fit-and-propert test” in order to become deputy governor of the central bank, about cryptocurrency and digital central bank currency (CBDC).
He said that Bank Indonesia would like to spend a digital rupiah that is to be used as a legal means of payment to combat cryptocurrency, Bloomberg reported and found that the central bank has been investigating this problem since the beginning of the year.
In Indonesia, crypto-assets are traded alongside raw material futures and regulated by the Ministry of Commerce, the deputy governor said. However, he emphasized that they have a significant impact on the country's financial system and stated:
A CBDC would be one of the tools to combat crypto. We assume that people would find CBDC more credible than crypto. CBDC would be part of the efforts to use crypto in financial transactions.
According to the Ministry of Commerce, around 7.4 million Indonesians invested in crypto-assets in July, a doubling compared to the previous year. Their crypto transactions amounted to around 478.5 trillion rupiah ($ 33.3 billion). The Indonesian government is driving the plans for setting up a dedicated crypto exchange.
The Indonesian Ulema Council (Majelis Ulama Indonesia or Mui), the leading Islamic body of the country, which has the authority for compliance with Sharia, recently explained the use of cryptocurrency Haram, which is prohibited according to Islamic law for Muslims.
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